Water Supply Augmentation Fee & Community Facilities Fee - PowerPoint PPT Presentation

R ANCHO M URIETA C OMMUNITY S ERVICES D ISTRICT Presentation to the Board September 20, 2017 Water Supply Augmentation Fee & Community Facilities Fee Presented by:

Presentation Outline • Introduction • Prior Efforts • Existing Fee Account Balances • Administration Capital Fee Distribution • Anticipated Costs • Adjusted Balance Summary • Development Summary • Water Supply Augmentation Projects

Presentation Outline • Proposed Facility Capital Improvement Projects • Administration Capital Improvement Cost Distribution • Dual Benefit Projects • Final Revenue Need Summary • Proposed Fees • Proposed Non-Residential EDU Methodology Change • Next Steps • Questions

Prior Efforts • Water Supply Augmentation CIP Tech Memo o Projects based on Recycled Water Program Preliminary Design Report prepared by Kennedy Jenks • Facilities CIP Tech Memo o Projects based on updating prior District CIP lists • Review and Approve Water Supply Augmentation CIP and Facilities CIP Tech Memos o Improvements Committee – May 2, 2017 o Board of Directors – May 17, 2017 & June 21, 2017

Existing Fee Account Balances • Table 1 – Current Balance Summary Administration Fee Account Cash on Hand Loan Balance Distribution Current Balance Water Supply Augmentation $1,698,790 $382,964 $0 $2,081,754 Water Capital -$245,589 $0 $217,776 -$27,813 Sewer Capital -$49,563 $0 $166,271 $116,708 Drainage Capital $235,171 $65,106 $35,270 $335,547 Security Capital -$136,350 $0 $140,518 $4,168 TOTAL $1,502,459 $448,070 $559,835 $2,510,364 • Cash on hand & loan balances as of May 31, 2017

Administration Capital Improvements Fee Distribution • Per District Audited Financial Statements o Water: 38.9% o Sewer: 29.7% o Drainage: 6.3% o Security: 25.1%

Anticipated Costs • Kennedy Jenks Studies o 100% Water Supply Augmentation Fee • Coastland Fee Study Report o 50% Water Supply Augmentation Fee o 50% Community Facilities Fee o Same percentages as Administration Fee Distribution • Future Fee Study Report o 50% Water Supply Augmentation Fee o 50% Community Facilities Fee o Same percentages as Administration Fee Distribution

Project Cost Estimates • Table 2 – Adjusted Balance Summary Fee Account Current Balance Anticipated Costs Adjusted Balance Water Supply Augmentation $2,081,754 $63,793 $2,017,961 Water Capital -$27,813 $27,436 -$55,249 Sewer Capital $116,708 $20,947 $95,761 Drainage Capital $335,547 $4,443 $331,104 Security Capital $4,168 $17,703 -$13,535 TOTAL $2,510,364 $134,322 $2,436,042

Development Summary • Development Projects & EDU Summary Calculation TM: Appendix B • Summarized in Table 3 • Total Number of EDUs – 1,718.1 • Based on o Known Development Projects o Parks o Others

Water Supply Augmentation Projects • Water Supply Augmentation Project – Recycled Water Program TM: Appendix C • Summarized in Table 4 • Eighteen Projects • Total Cost of $12,219,250 • Anderson Ranch Spray Field 4 moved to Facility CIP TM

Proposed Facility Capital Improvement Projects • Facility Capital Improvements Project TM: Appendix D • Summarized in Tables 5 through 8 • Twenty-Five Projects • Water Total Cost of $3,601,920 o Includes RWA Grant Match for Backup Well • Sewer Total Cost of $5,446,930 o Includes Anderson Ranch Spray Field 4 • Drainage Total Cost of $382,120 • Administration Total Cost of $400,960

Administration Capital Improvement Project Distribution • One Project • Water Capital Improvement: $155,973 • Sewer Capital Improvement: $119,085 • Drainage Capital Improvement: $25,261 • Security Capital Improvement: $100,641 • Same Percentages as Administration Fee Distribution

Dual Benefit Projects • Benefit New Development & Existing Users • Ten Projects Total • Water & Sewer Share Based on Water Usage • Drainage Share Based on Undeveloped Acreage o District-wide Projects Based on Full Acreage o Commercial Area Based on Benefit Area Acreage • Summarized in Tables 9 through 11 • Water Allocated Cost of $2,761,699 • Sewer Allocated Cost of $4,115,673 • Drainage Allocated Cost of $205,882

Final Revenue Need Summary • Table 12 – Final Revenue Need Summary Development Share of Fee Account Project Costs Adjusted Balance Final Revenue Need Water Supply Augmentation $12,219,150 $2,017,961 $10,201,189 Water Capital $2,917,672 -$55,249 $2,972,921 Sewer Capital $4,234,758 $95,761 $4,138,997 Drainage Capital $231,143 $331,104 -$99,961 Security Capital $100,641 -$13,535 $114,176

Proposed Fees • Water Supply Augmentation Fee: $5,938 per EDU • Community Facilities Fees o Water Capital Improvement Fee: $1,730 per EDU o Sewer Capital Improvement Fee: $2,409 per EDU o Drainage Capital Improvement Fee: $0 per EDU o Security Capital Improvement Fee: $66 per EDU o Total Fee: $4,205 per EDU

Proposed Non-Residential EDU Methodology Change • Currently Based on SF by Use • Proposed Based on Meter Size o 1” meter = 1 EDU o 1.5” meter = 2 EDUs o 2” meter = 3.2 EDUs o 3” meter = 6.4 EDUs o 4” meter = 10 EDUs o 6” meter = 20 EDUs o 8” meter = 32 EDUs

Next Steps • Today – Review & Provide Comments on Report and Ordinance • October 18 – Approve Study and First Reading • November 15 – Adopt Ordinance

QUESTIONS?